Correlation Between PT Sarana and Magyar Telekom
Can any of the company-specific risk be diversified away by investing in both PT Sarana and Magyar Telekom at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Sarana and Magyar Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and Magyar Telekom Plc, you can compare the effects of market volatilities on PT Sarana and Magyar Telekom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Sarana with a short position of Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and Magyar Telekom.
Diversification Opportunities for PT Sarana and Magyar Telekom
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SMNUF and Magyar is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and Magyar Telekom Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom Plc and PT Sarana is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Sarana Menara are associated (or correlated) with Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom Plc has no effect on the direction of PT Sarana i.e., PT Sarana and Magyar Telekom go up and down completely randomly.
Pair Corralation between PT Sarana and Magyar Telekom
If you would invest 1,502 in Magyar Telekom Plc on September 1, 2024 and sell it today you would earn a total of 72.00 from holding Magyar Telekom Plc or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Sarana Menara vs. Magyar Telekom Plc
Performance |
| Timeline |
| PT Sarana Menara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Magyar Telekom Plc |
PT Sarana and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and Magyar Telekom
The main advantage of trading using opposite PT Sarana and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, Magyar Telekom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magyar Telekom will offset losses from the drop in Magyar Telekom's long position.| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
| Magyar Telekom vs. HUMANA INC | Magyar Telekom vs. Aquagold International | Magyar Telekom vs. Barloworld Ltd ADR | Magyar Telekom vs. Thrivent High Yield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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